More South Africans have some kind of short term insurance than ever before and the rate of claims has increased proportionately. There is growing concern though, amongst the increase in claim rejections.
Read through our checklist below to ensure that your next claim doesn’t get rejected.
1. Items not specified
This occurs mainly where a particular item has not been specified on a policy and at the time of claim is not covered. Make sure that if you acquire a new item of value, that you notify your broker and request that it be added it to your policy. This is especially important for inherited items, as it may not seem like a new addition to you. It is however for your policy.
2.Gradual deterioration of belongings
Items that deteriorate naturally or from use over time, to a point where they are eventually no longer usable, are almost never covered. Insurers generally cover a loss if the damage was sudden and unforeseen.
3. Failing to consider property maintenance and additions
Building insurance can also be tricky if proper maintenance is not carried out on your property. Home improvements, such as adding green features like solar panels or a generator, might not be covered if the policy is not amended to include them specifically. Refer to point 1 in terms of specifying necessary additions.
4. Lack of proof of ownership
It is also important to note that if you can’t prove that you owned an item, it may not be replaced. An example of this could be if you have no proof of serial numbers on electronic equipment.
5. Non-compliance with security
Burglary claims are often rejected if you don’t comply with the security requirements set out in your policy. For example, an alarm clause in a policy may include:
– that an alarm system must be installed;
– that the system must be linked to a 24-hour reaction unit;
– that it must be maintained and in good working order;
– that the alarm must be activated when the dwelling is unoccupied, even for short periods of time (i.e. to go to the shop or to drop the kids at school);
that the system may not be removed without the insurer’s consent.
To ensure that your claims are successful, it’s important to make sure your insurance policy is up to date and specifies exactly what you need cover for. Equally important is making sure that you adhere to the terms and conditions of your policy. Give us a call and we will help go through your policy and check if everything that should be there, is.